Schwab: Retail investors keep on buying tech stocks

The stock market’s record-breaking run paused in June, but retail investors kept on the gas, new data from Charles Schwab shared exclusively with Axios shows.

Why it matters: The monthly report shows that retail investors continue to buy dips in the market and favor tech stocks even as worries about an AI bubble persist.

By the numbers: The Schwab Trading Activity Index, or STAX, increased to 59.12 in June, up 7.33% from May’s score of 55.08.

• The strongest buying, Schwab says, came during a market retreat in the middle of the month.

• The STAX score is calculated by examining the stock positions and trading activity of millions of Schwab’s customer accounts.

What they’re saying: “Retail investors are still willing to lean in,” says Joe Mazzola, head trading and derivatives strategist at Schwab.

• The STAX, he noted, rose every week of the month after a slight retreat in the first week, with net buying outpacing net selling by more than 2 to 1.

The net buying was consolidated in tech names, chiefly SpaceX (which made its market debut on June 12), Nvidia, Micron Technology and Microsoft.

• Among the stocks that were net sold by Schwab clients in June were Berkshire Hathaway, UnitedHealth Group, Snowflake, IREN and Cisco Systems.

What to watch: A separate attitudinal survey by Schwab showed investors somewhat more optimistic than they were a month ago.

• The biggest concerns continue to be inflation and rates, tariffs and uncertainty over the Iran war.

• “Elevated valuations” have moved up in investors’ list of potential risks.

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